Singapore

After the surprises from the Woodleigh Lane and Stirling Road tenders, the top bid of $964.80 psf/pr for the Serangoon North Avenue 1 parcel, with 16 parties contesting, was very much expected.

The aggressive bidding in the previous tenders has led to some developers bidding more vigorously today to try to secure the subject site. The JV of Corson Pte Ltd and Wingjoy Investment Pte Ltd lost out by a mere 0.8 per cent to CEL Unique Development in the Woodleigh Lane tender but came in tops in today’s bidding, beating FCL Residences Pte Ltd by a 6.6 per cent margin. FCL was ninth in the Woodleigh tender but despite its stronger bidding today, managed only a second placing. The JV of Singland and UOL was fourth in the Stirling Road tender but ended up third in today’s bidding.

This shows that for those who are keen to secure a site, there is no choice but to bid aggressively under current market circumstances. While Corson & Wingjoy lead by a clear 6.6 per cent margin, the second to fourth highest bidders were within a 0.4 per cent margin, reflecting the tight competition between the parties.

The subject parcel is in an established and popular residential location comprising of private estates and public housing. It is a short drive or bus ride to Nex shopping centre and Serangoon MRT station and also near other amenities. Assured of demand for homes in this locality, developers are confident that there will be keen interest from buyers in the subject development. The top bid at close to $965 psf/pr suggest that the unit selling prices could be around $1,600 psf or upwards which shows an expectation of the market to be on the recovery path.